House Floor Session 4/1/19



the house will come to order prayer by the chaplain let us pray gracious God we give thanks for another day to make a positive difference in this world you have created us with great opportunities to serve other people in need to share together with respect and to be faithful to the responsibilities we have been given in this moment of prayer please grant the members of this house as they meet with the citizens of the great state of Minnesota and each other the gifts of wisdom and discernment that in their words and their actions they will do justice love and mercy and walk humbly with you in moments of disagreement may mutual respect and civility be shown at all times and may all of our actions show the very best in how you created us may all this be done this day and every day be for your honor and glory amen the chaplain for today is Reverend John Mitchum from Albert Lea United Methodist Church Albert Lea Minnesota Pledge of Allegiance please remain standing recite the pledge of allegiance to the flag of the United States of America the clerk will take the roll the clerk will close the roll a quorum is finally present the clerk will read the Journal of the preceding day journal of the house 91st session 2019 29th day st. Paul Minnesota Thursday March 28th 2019 if there is no objection for the reading of the journal will be dispensed with and the journal will be approved as corrected by the chief clerk hearing no objection the journal is approved as corrected by the chief clerk comparison reports there's a copy of this order of business on each members desk if there is no objection the motions will prevail hearing no objection the motions prevail and the substitutions will be made reports of standing committees and divisions a copy of this order of business has been placed on each members desk if there is no objection the reports will be adopted hearing no objection the reports are adopted second reading of House files sekarang house saw number 557 second reading second reading of Senate files second reading Senate file number 1547 second reading introduction of bills the following house files have been offered for introduction today the chief clerk will report the house files and give them their first reading introduction of first reading of House files 27 62 through 2792 first reading host files 27 62 through 2792 messages from the senate message from the senate madam Speaker I have the honor to announce that the Senate has appointed to a committee of five members of the Senate to act with a light Committee on the part of the House to escort the Honorable Tim waltz governor of the state of Minnesota to the house chamber on the occasion of the joint convention on Wednesday April 3rd 2019 at 7 o'clock p.m. senators Eaton Goggin Isakson Rarick and Rosen have been appointed as members of such committee on the part of the Senate the message is signed Cal our lunamon secretary of the Senate message to the house madam Speaker I hereby announce the passage by the Senate of the following house file here with return as amended by the Senate and which amendments the concurrence of the house is respectfully requested hostile number 400 and act relating to health the messages signed Cal are lewd iment secretary of the senate Olsen moves that the house refused to concur in the Senate amendments the house file number 400 that the speaker appoint a conference committee of three members of the house and that the house requests of the light committee be appointed by the Senate to confer on the disagreeing votes of the two houses the member from st. Louis representative Olson to your motion thank you madam Speaker that is my motion the bills are different and I think we will be well served by a conference committee any discussion to the olsen motion hearing none all those in favor please say aye those opposed please say no the motion prevails message from the Senate madam Speaker I hereby announce the passage by the Senate of the following Senate file here with transmitted santé file number 13 39 first reading of Senate files first reading of Senate fouls number 13 39 an act relating to transportation you hakeem moved that Senate file number 13 39 and house all number 15 68 now on the general register we refer to the chief clerk for comparison hearing no objection so ordered calendar for the day first bill on the calendar for the day is House file a twenty to sixty five the clerk will report the bill house file number twenty to sixty five number three on the calendar for day and act relating Human Services the first engrossment the member from ramsey representative pinto thank you madam Speaker members house file 2265 relates to background studies and disqualifications for Department Human Services licenses so there's a background study that is conducted when somebody applies for a license and there's a disqualification that occurs when that person is convicted of certain crimes and right now there's a permanent bar for certain crime so I have a constituent I suspect that we all may have constituents in this type of situation who is a a cab driver for the blue and white taxi company and he is disqualified from providing non-emergency medical transportation because of a conviction that occurred in 1972 when he was age 18 so 47 years ago he's had no problems since then and we heard both from him and from his employer in committee the employer said that that this has been a very good employee and and in fact the shift in their business they want to do more of this non-emergency medical transportation again this can apply in all kinds of areas members it occurs to me and I think to those as this bill has passed through both bodies that when a certain amount of time has passed we should at least allow for the possibility that somebody may be able to apply for a license and receive it so what the bill does is says that after 20 years 20 years that then the department may consider granting a set-aside of the disqualification allows somebody to to receive a license there's no requirement that they do so simply allowed to do so of the circumstances support that grateful to have bipartisan support and and for the opportunity to allow people to contribute to their to our society and to the economy when 20 years have passed since the conviction much less 47 in the case of this individual members I'd ask for your support of house foul 2265 thank you madam Speaker there are no amendments at the desk the clerk will give the bill its third reading third reading house on number twenty two sixty five third reading discussion to the bill seeing no discussion the clerk will take the roll the clerk will close the roll they're being 73 eyes and 54 nays the bill is passed and its title agreed to the next bill on the calendar for the day is house file 2276 the clerk will report the bill house file number 22 76 number 4 on the calendar for the day and act relating to the environment I recognize the member from Ramsey representative waz la wake to your bill thank you madam Speaker members house file 2276 is a proposed ban of the chemical trichloroethylene otherwise known as TCE TCE is a known carcinogen used as a solvent for decreasing metals as an intermediate chemical for manufacturing other chemicals and is found in consumer products such as paint strippers adhesives and spot removers research has found that TCE has a potential to cause fetal heart defects and may impact the development of the immune system in early life TCE may also harm the central nervous system kidneys liver and the male reproductive system long-term exposures may increase the risk of certain types of cancer including liver and kidney cancer and non-hodgkins lymphoma members a company in my district has been emitting higher than permitted levels of this carcinogenic chemical into the air in a residential area since at least 2000 – their facility emitted more than a hundred tons of TCE in calendar year 2018 despite the fact that they were supposed to be admitting under ten tons per year you should have received a copy of the area of concern or should be on the way to your desk right now that was put together based on computer modeling done by MPCA and mdh the map shows the area of concern that has been exposed to see TCE levels above health benchmarks developed by the Minnesota Department of Health in the in the map you'll notice there there are two schools and a golf course within the area of concern there are also 5500 people living in the area of concern and homes very close to the facility including some on the same street as the facility that's 5500 residents who are worried about how these exposures might have impacted their health some of you were in committee when a member of the connected community Shari Smith shared her story I want to share a little bit about what of what she said for those who weren't in the committee she said I've lived in my home for 18 years and I've raised my three children there I live less than a quarter of a mile from the plant I now I'm gonna worry if my children are gonna develop cancer in 10 years in 15 years and again the extent of the damage to families to health of the citizens in these areas it's not known the exposure has occurred though that part is factual it's happened it's too late for my community the exposure has happened but I'm asking for your support so that this does not happen to others members today we have an opportunity to do something about this issue so I would encourage you to please join me in voting green on this bill and let's help ensure that the people of Minnesota will not have their health and their well-being endangered by this toxic carcinogenic chemical there's an amendment at the desk the clerk will report the amendment wazzle at WIC moves to a men house on number 22 76 as follows the amendment is coated a 1 representative was like thank you madam Speaker members this amendment deletes the consumer products ban part of the bill most of the health impact most the negative health impacts from these products actually comes from companies who are using it in the in the ways specified in the bill so this amendment takes out the consumer products part and I urge members to support it with the green vote thank you discussion to the amendment seeing none all those in favor of the amendment please say aye those opposed please say no the motion prevails the amendment is adopted there are no further amendments at the desk the clerk will give the bill its third reading third reading house file number 22 76 as amended third reading discussion the member from Ramsay representative Becker Finn thank you madam Speaker my constituents were also included in in the zone on the map that you're now receiving at your desks so again this this is this came came about because of a company water gremlin located in White Bear Township and and just to reiterate what represent Vlasak spoke to there's not much that can be done to protect our constituents in this area from the exposure they've already had to this chemical and so what this would do would protect everybody else's constituents from this chemical we know that it's toxic there are alternatives that companies can use and this is an easy thing that we can do to protect everybody in our state for their discussion to the bill the member from Ramsey representative Fisher thank you madam Speaker I also rise in support of this bill this is a chemical that also impacted some of the residents of Maya district one of the reasons I'm supporting that we should be banning TC is there are other less toxic chemicals out there that will replace most of the industry uses out there so I would encourage a green vote on it thank you further discussion seeing none the clerk will take the roll on the bill members please vote the clerk will close the roll there being 120 eyes and seven nays the bill is passed as amended and its title agreed to the next bill on the calendar for the day is house file 495 the clerk will report the bill house file number 495 number 1 on the calendar for the day an act relating to housing I recognize the member from Hennepin representative nor to your bill thank you madam Speaker House white 495 is about fairness and equity in in the landlord-tenant relationship madam Speaker this is about consumer protection this bill ensures that when somebody leases an apartment that you will put the apartment number on the lease madam Speaker and members many individuals in my district and throughout the state being asked to sign a lease for something that they don't know what they're signing for and being taken advantage by landlords who don't want to give them what they have asked to pay for so this requires that a unit to be identified on the front page so that you know what you are paying for the second issue that we are trying to fix is when you sign a lease that you have signed for a full month does not mean that you're going to be vacating the apartment two weeks or three weeks prior to the end of that lease we have seen many instances that is the vacation of an apartment is in the 28 page or the fifth page and many individuals who have signed the lease when that homeless that they cannot continue to reside on an apartment that they paid for this ensures that we're having an equal playing field whereby when there is a notice on a period of two months for the landlord then the tenant also gets two months of that period we cannot allow a slumlord who will take advantage of individuals who are paying and making sure that they do have an equal protection under the law this ensures that two month means two months if it's good for the landlord it's good for the tenant finally we're removing a small error in the law whereby there's a TT instead of one T for the word theorem we're also removing the exception that giving a waiver under this provision madam Speaker this is again about fairness equity and protection for the tenants and I ask for your support thank you so much madam Speaker there's an amendment at the desk the clerk will report the amendment mm-hmm normals to amend house saw number 495 as follows the amendment is coded a9 representative nor madam Speaker this amendment reflects on the conversation that we've had with many stakeholders and including from representing Peggy Scott that I promised that I will include this to make sure that the bill addresses the day of the final enactment that includes that applies to leases entered into or renewed on or after that date so this makes a correction and removes the ambiguity in the law making sure that everything that we've talked about with all the stakeholders that we will apply an equal lease time according to chapter 5 or 4b thank you madam Speaker discussion to the amendment all those in favor of the amendment please say aye those opposed please say no the motion prevails the amendment is adopted there's an amendment at the desk the clerk will report the amendment Munson moves to a man who saw number 495 as amended as follows and the amendment is coded a 19-4 1 to 9 the member from Blue Earth representative Munson thank you madam Speaker and members I rise today because I'm very concerned about lowering the cost of rent for many of the units here in Minnesota we have a Housing Committee where we hear bills about how we can lower the cost of rent and make things more affordable for people in Minnesota because we have a housing shortage and yet this bill directly will raise the cost of rent in Minnesota this bill will make less rentals available in Minnesota because it changes the notification period it does a lot of different things in this bill and it takes the tools away from landlords to allow them to lower the cost of rent for tenants and this this first amendment that I'm introducing the 1:29 amendment would delete section three of the bill which is on page two of the bill and this has to do with the time period that tenants have to give notice to the landlord so I moved to the University of Minnesota when I was 17 years old and I got a job managing a 22 unit apartment building on campus not managing it the first year I was taking doing all the maintenance but the second year when I was 18 I was in charge of managing this building and at the University of Minnesota what representative Nour failed to mention is that right around this the university there is a major shortage of housing in fact all of the rentals at the you start on September 1st and go to September 1st the next year and that means and because of such a shortage of housing almost all of the rentals have already been signed it for least for September January and February of this year and when you're managing a large building and you know that the people that you've approached and they don't want to renew their lease as a landlord you don't know what the what condition the property is gonna be in in August when that tenant moves out and so because you don't know what condition the properties in you can't guarantee that it's gonna be ready for move-in on September 1st and when there's large apartment buildings that have the same two-bedroom style apartment same square footage and you sign a lease with a tenant you should be allowed to assualt to to lease them a property where they know it's a 2-bedroom unit but they don't know the exact apartment number because you can't guarantee nine months ahead of time that that place isn't going to have to have the carpeting fixed painted we don't know how much work is going to have to go into that unit and in order to keep the property costs low we allow some flexibility in this and this is a negotiation between the tenant and the landlord when you're going to school at the University of Minnesota you're not just you don't just learn stuff in college but you learn stuff in real life and part of that is when you're 18 years old and you sign a lease that you have to learn you have to read the lease and understand what the lease says in in order to lower the cost of rent landlords should be allowed to have this tool this ability to lease out property units in in lease out 80% of the units for September 1st knowing that they they know those will be ready and for the other units they might have to sit empty for the entire month of September so that they can paint and carpet and do all this other maintenance on the property so that we create safe housing for students so this bill members delete section 3 which is that the time period a notice or quit for rent I'm sorry this i'm sorry hang in one second I got my amendments messed up here this section for notice well now that I got to tell you about the first part of the bill that I didn't like this this period has to do with the the notice period to quit one of the things that's really important when you're leasing an apartment is after your tenants have been there for a year a lot of them go onto a month-to-month lease or you ask them to sign another one-year lease now when the housing markets doing really well and the economy is doing really well a lot of tenants like to buy houses and when tenants come to me and they say look I don't want to sign a year lease but I'd like to stop start shopping for a house can I go month-to-month and normally when when landlords change their leases to go in a month-to-month term they have to increase the cost of rent because the risk to the landlord of having a vacant unit is higher so in order to keep the cost of rent low landlords will ask the tenant can you just give me a 90 day notice that you're going to move it that you're gonna end your month-to-month lease so that I can start shopping for tenants and during this period of time that your month-to-month I'm going to look for a really good tenant who will stay there for a year lease and if those terms are agreeable between the landlord and the tenant they should be able to sign a lease that allows for this but this provision in the bill says that if the landlord has a 30-day notice that the tenant would also have a 30-day notice and I'll be honest with you people that are shopping for apartments with less than 30 days notice are not they are typically not the most organized of tenants there's about 15 percent of tenants that are looking for apartments this month the really good tenants are looking for 60 sometimes 90 days out and those are the tenants that landlords want to find and so it's really important that the tenant be given the option of accepting lower rent if they can take part of this risk away from landlords so that we don't have more vacancies out there this this amendment section 3 requires that landlords and tenants have to have the exact same notification period in this will increase the cost of rent for a lot of tenants in Minnesota representative Knorr bill addresses a specific issue rate around the University of Minnesota and if this is such an important issue I would encourage him to go to the Minneapolis City Council and look at putting an ordinance in around the Marcy homes neighborhood around the University of Minnesota but this bill will change notification periods all across the state of Minnesota and this is an important tool that landlords used to lower rent and so I urge members to vote YES on this amendment madam Speaker I asked for a roll call representative Munson request a roll call are there 15 hands seeing 15 hands there will be a roll call discussion to the amendment representative nor thank you madam Speaker just to look at the rent how much I'm paying and throughout the city of Minneapolis I think the newspaper Star Tribune had a good article yesterday that many individuals are almost paying 50% of their income this bill will not increase the rent for anyone in fact if it was going to increase the rent for the students they're the ones who have been championing for this bill and many other individuals they will not have come forward and say we are supporting this bill this bill is protection for them this bill ensures the principle of mutuality if it's good for the landlord it's good for the tenant so having two months to vacate the apartment and the Landlord getting the two month notice for rent increase and anything that comes under the law under this section three including the waiver nobody should be asked no tenant should sign a waiver for their rights that they're given under this provision madam Speaker I oppose this amendment and I ask for you to vote it down discussion to the amendment the member from Wright representative Lucero thank you madam Speaker and to the bill author and to members we obviously know that there is partisan legislation that comes through and nonpartisan and I would classify this as a non partisan bill the intent is not to be not the bill the amendment but the bill too I truly believe that your bill isn't motivated by partisanship but one of the things that I have a huge concern on are your comments that you just said is that this bill won't raise rents and I just want to repeat something I said in Judiciary Committee when the bill was before us the fact is it will have the result of raising rent I to read the article that you you cited in the start reviewing over the weekend there is an affordable housing problem right now there are many good people that are trying to find good places to live and the bill law that just made the common what's good for the landlord should be good for the tenant but in the landlord tenant relationship please understand this non-partisan truth that the landlord has a greater stake more skin in the game in terms of maintaining the bottom line than the tenant does the lion Lord has more risk involved when it comes to managing maintaining and renting housing and the reason that it's the parody is different in allowing the landlord greater time frame is what representative munchin Monson had mentioned out of it a 12-month calendar year members it may take 11 months just to cover the costs of principle interest property tax and insurance and only one month out of 12 might be the profit for that landlord on that rental unit and so by taking away eliminating the flexibility that a landlord the the lead time that I would have as a landlord to know that my my tenant is going to be leaving if I cannot find a replacement tenant in sufficient time I might lose money and if I lose money for a long enough period of time I'm gonna have to do what I'm gonna have to raise rent in order to cover my costs my increased risk the way that a landlord calculates the rent is simply are all of the costs covered then what is the potential risk for unforeseen circumstances that would create an unforeseen unanticipated cost I need to anticipate those therein lies my risk and then I need to determine the rent I'm going to charge and by shortening the amount of time that I have to find a replacement tenant means my risk increases when my risk increases rent goes up so representative nor well I believe you had a good faith effort you are 100% wrong that this will not result in a long term ever increasing of the rents across Minnesota the other thing that makes me highly disturbed by this bill is this was by your predecessor this bill was carried last year and the same motivation was behind it by the students on the U of M campus to come forward and was pushing this issue this is a very narrow issue for a very specific type of housing student housing on the University of Minnesota campus but what the bill is doing is applying this to all housing across the entire state of Minnesota and I can tell you as a landlord the risks that I have to deal with the challenges that I deal with in different types of housing are different if I'm renting a single room within a building versus renting a duplex versus renting an entirety of a single-family home versus renting a an apartment in a four-plex or in the 12 Plex or something much larger there are different challenges and I'm not sure why the bill author was not receptive to the reality on the non again nonpartisan reality that different types of units have different challenges why is there a failure to recognize this nonpartisan truth and it would have been my desire that the bill author would have been receptive to incorporating some of these nonpartisan ideas so that we can ensure that the great residents of Minnesota are not going to see the continual rent increase members we can work on this issue with not taking a hammer or I should say maybe an axe when a scalpel would be more appropriate and so members I would highly encourage you to recognize this nonpartisan truth and please support the Munson amendment thank you for their discussion to the amendment seeing none the clerk will take the roll on the amendment the clerk will close the roll they're being 55 eyes and 72 nays the motion does not prevail the amendment is not adopted there's an amendment at the desk the clerk will report the amendment mmm Munson moves to amend house well number 495 as amended the amendment is quoted a 19-0 1 for 3 representative Munson thank you madam Speaker and members I'm disappointed that we're raising the cost of rent on tenants in Minnesota I I really I really thought we could understand that this is it shouldn't just be a bill brought forward by lobbyists that we should actually be discussing this we had a healthy debate in committee I was able to stop one amendment that would have actually applied this to existing leases and that was really it was really a scary amendment this amendment members I this this admits that I that the notice for raising someone's rent actually should be the same from landlords and tenants I understand representative Knorr issue where tenants are upset that the landlord can raise the raise the rent with only 30 days but yet upon receiving that notice I can't decide I'm going to move out because the notification period might be 60 days so this amendment allows the provision in this bill to be about raising rent and making sure that there's parity between landlord and tenants on the amount of time required for raising the rent but it removes this provision that that tenants and landlords should not be able to negotiate terms of a private contract that allow the landlord to lower the rent if the tenant will give them more notice this provisions really important and i an't i don't think that people are paying attention to how much landlords use this tool to lower rent in minnesota as representative Lazaro mentioned when you increase the amount of vacant scenes and property in Minnesota two things happen you have rent you have less rentals on the market and the cost of that rental goes up by at least nine percent which is the cost of having a vacant month one month spread over the other 11 months of that rent so if you don't adopt this amendment today you will be directly raising the cost of rent as a landlord for the last 25 years I have worked diligently to make reasonable accommodation to tenants with special needs people that are going through a divorce people that come here and they don't know if their job is going to be permanent and so they're afraid to sign a one-year lease but they want to do a month-to-month leasing can give me 90 days notice I can lower the cost of rent I will take tenants who don't need that perfect perfect tenant and I will be in in in as we talked about in committee a lot of landlords do this but there are some bad actors in representative NORs district that are not doing the sitter that are using this for a disadvantage but the overwhelming majority of landlords in the state are working hard to fill their properties and make their make their rent affordable and if you do not accept this amendment today you'll be raising the cost of rent and that's really a concern private contracts are one of the things that make America great that we can actually negotiate a private contract that's that works out terms for both tenants and landlords and this removes a major tool that we have for making rent more affordable so madam Speaker I would ask for a roll call on this vote on this one as well representative Munson requests a roll call are there 15 hands there are 15 hands there will be a roll call discussion to the amendment representative nor madam Speaker similar to the other argument you oppose this amendment and it does not do well for what we intend to do so thank you so much madam Speaker discussion to the amendment seeing none the clerk will take the role in the amendment the clerk will close the roll there being fifty three eyes and seventy three nays the motion does not prevail the amendment is not adopted there's an amendment at the desk the clerk will report the amendment mmm-hmm Munson moves to Amman Hassan number 495 as amended the amendment is quoted a 19-0 three one six representative Munson thank you madam Speaker third time is definitely gonna be a charm here I can feel it so this bill gives representative Noor everything he wants here except if a tenant and a landlord want to agree in writing that this flexibility should be allowed so that the landlord can lower the rent especially when we're dealing with tenants that have special needs they they need an apartment that's month-to-month and landlords want to give them that accommodation so long as their notification period is longer so they can look for tenants all I'm asking here is that to private citizens be allowed to agree in writing in a contract in with disclosure to the tenant so that they know what they're signing that's all we're asking for a private contract so that a landlord can make reasonable accommodation with tenants to lower the cost of rent in exchange for the tenant giving them a longer notice period because they have a special need that they're asking the landlord to meet this provision just asks that the tenant be allowed to have this in writing and say I agree that I am I am giving you more notice in exchange for lower rent that's all that I'm asking I'm this this bill is going to have a major change on rental in Minnesota you're going to have more vacancies and you're going to increase the cost of rent on tenants around the university and everywhere across Minnesota by taking this important flexibility away from landlords and tenants to negotiate a private contract here's big government moving in this is where government starts creating problems and then to four years from now we'll come back and in wonder why we're having all these vacancies why is the vacancy rate going up to seven or eight percent in Minnesota why are wider landlords having to pay more money for commercial loans for properties because they're based on your vacancy rate every year I have to report to the bank what my vacancy rate is and I don't get to have 30-year loans on properties they come back and renegotiate that rate and it's based on my vacancy rate and if tenants get to give me 30 days notice on a month-to-month lease that they're moving out it doesn't give me time to go find tenants to fill properties so now you're increasing the cost of doing business in Minnesota and guess what other states don't have this kind of junk in their laws so others so when you have real estate investment trusts and other large investors in property they're not going to invest in Minnesota we sit in committee and here why are we building more affordable housing in Minnesota and it's junk like this that's keeping people out of our state and it's going to take people who have rental properties who decide you know what it's not worth it anymore why would I want to have all of this risk why would I want to keep on raising rents on my tenants to cover all these losses so this bill simply says that you're allowing private individuals to negotiate a private lease as long as this is called out and the tenant waives this this ability and that they say they can have a longer notice period that's all we're asking so please vote YES on this bill on this amendment madam Speaker I'd ask for a roll call as well representative Munson request a roll call are there 15 hands there are 15 hands there will be a roll call representative nor madam Speaker and members a tenant should never ever sign a waiver when it comes to leases especially given under this provision the tenant does not write the lease the landlord writes the lease so there's a balance of power whereby the landlord has got more powers over the tenant so I ask you what read on this amendment remember from Wright representative Lucero thank you madam Speaker representative Noor you're wrong the tenant does write the lease they are part of the negotiation process when I put my unit up for rent I attract a prospective tenant and that a negotiation takes place we negotiate the length we negotiate the security deposit when you go she ate pets we negotiate a tremendous number of things subletting there's a number of the issues that we go back and forth and the prospective tenant has a direct hand in writing the language of the lease that we voluntarily agree to so your Anya madam speaker would the amendment author representative Munson yield for a question he will yield representative Lucero thank you madam Speaker represented Munson as a landlord yourself and as a former property manager is it your understanding that under Menace current Minnesota law that a contract such as a lease is not legally enforceable unless the person signing the contract is at least 18 years old representative Munson represents a row I'm not an attorney but I would say yes they have to be 18 sane and sober representative Lucero thank you madam Speaker and would the author of the amendment to yield for another question he will representative Lucero thank you madam Speaker and representative Munson as far as you're aware under current Minnesota law a person who is age 18 a legal adult are they able to make the voluntary decision to purchase tobacco products are they able to make the voluntary decision this would be federal I suppose to join the military the Armed Forces what a person of eighteen years old be able to voluntarily make the decision under Minnesota law to get a tattoo or their ear pierced representative Monson madam speaker representative Lucero I believe you're correct in all those statements yes representative Lucero thank you madam Speaker so what representative Noir is doing with the provision in this bill is saying a person doesn't have enough intelligence in fact his comment at the beginning of this was where did I put it wrote the quote down and now I can't find the quote but something that effective people don't know what the signing well if people don't know what they're signing then they shouldn't sign it if they're 18 years old and what the bill author is doing with this provision is saying people don't have enough intelligence and so of all the provisions that are contained within Elise that this one provision we're gonna make it mandatory they cannot voluntarily waive but they have enough intelligence to do all these other things join the military buy tobacco products do many other things they have enough intelligence to that but they can't they don't have enough intelligence to do there so we need big government nanny state to come in and say we know better than you and we're gonna make sure that you cannot make a decision on this aspect members I highly encourage a green vote on this amendment Thank You representative Monson thank you madam Speaker and I want to respond to representative Knorr well when he said that you don't waive your rights or that tenants shouldn't waive their rights and tenants waive a lot of rights when they when they sign a lease to live in a property they say they may waive their rights to have a 200-gallon water bed or hang a 40-pound disco ball from a ceiling they may waive their right in might in my properties to have a keg at a party because I like to ban kegs around the university because it typically involves parties and so they wave a lot of rights and the lease is actually goes through and talks about what your rights are and what you can do and what you can't do that's the whole point in having a lease it isn't just about how much its costs but there's a lot of provisions that are at least and at least that are important and flexibility is very important some some leases allow you to sublet to anybody some leases well will ban it and that all has to do with flexibility for the Landlord and Tenant and in every provision of the lease is a negotiation between the two and so this lease is written between the landlord and the tenant yes the landlord may prevent what their standard lease is but the tenant might say you know what I I want to give you an extra $400 a month if I can give you one day notice to move out and that would be up to the landlord to decide if it's worth the risk or not but this bill this this bill in its entirety is going to raise the cost of rent in this provision will at least maintain some decency in private contracts in allowing a landlord and tenant to negotiate a lease that's reasonable I here in committee a lot that we need to we need to be careful about people that have had evictions prior evictions we want to make sure that all people have access to affordable housing this provision will allow landlords to be flexible to accept people with special needs or a checkered past and this is really an important tool for landlords to lower the cost of rent and I'm disappointed that this bill has come forward and I had asked members to please accept this amendment that allows people to waive their rights and actually negotiate a lease that's affordable the member from Olmstead represented Pearson thank you madam chair and with the bill author the underlying bill author would he yield to a question please he will yield representative Pearson thank you madam chair and I'm just actually curious if the bill author has ever been a landlord representative nor no madam Speaker I have never been a landlord representative Pearson thank you madam chair and it's not a requirement of course to be in the legislature and have been a landlord and just trying to get a little bit of context and experience with the bill author continue to yield he will yield representative Pearson thank you madam chair and I guess just hypothetically speaking do you think it would take do you think it'd be easier to find a tenant in 30 days or 60 days representative nor madam Speaker given the housing crisis that we have in Minneapolis and many parts of the state it may even take you less than because you're giving a person at 30 days for somebody to vacate and a new tenant to move in so I believe that 30 days is more than enough but otherwise according to this law or bill you can give two months to the king and that is equal time that you're going to give to the tenant so we're trying to create an equal playing field for the tenant and the landlord representative Pearson thank you madam Speaker and of course for not having been in the legislature very long that was a very good non answer to the question I guess I would point out to the bill author that of course in certain areas of the state where manufacturing is maybe burned up in a small town such as st. Charles Minnesota and and workers have left the town because the employer main primary employer has left that's just not the case it could take 30 60 90 120 days possibly to find it with the bill author continued to yield for a question he will yield representative Pearson thank you madam Speaker and to the bill author I'm just curious whether or not he thinks that there would ever be a circumstance under any circumstance at all in which a tenant may actually find themselves willing and eager to take a disparity in the in the district scuse me in the notices representative nor madam Speaker in this bill the only way that we've been talking about is under the provisions under Section three so when we're covering the waiver is no one shall sign the waiver for the period notice and that is what we're talking about in this bill representative Pearson not a speaker that's exactly what I'm talking about would they ever with if there's if the bill author would continue to yield he will yield representative Pearson madam Speaker and again to the question again to that waiver would you ever contemplate a circumstance under which the tenant would actually be eager and willing to take a disparity between what the landlord's disclosure period is the 30 days the 60 days whatever that is would the landlord when it would a tenant ever be at an advantage in willing and eager to take that on as a better opportunity for their circumstances representative nor madam Speaker this is about providing an equal playing field for the landlord and the tenant so whatever is good for the tenant is good for the landlord representative Pearson madam Speaker I would love to get an actual answer to the question but I'll move on I'll actually ask the the amendment author if he would yield to a question he will yield representative Pearson madam Speaker and I'm sorry I didn't actually ask you ahead of time representative Munson but what would a one-month period of time in vacancy equal in the cap rate on a property in in vertical again with a cap rate that's just a percentage but what what would that what would that percentage be on the on the rental income for the landlord representative Munson thank you madam Speaker representative Pierson I don't I don't know what the exact numbers would be it would vary from property to property based on all your expenses but it could raise the cap right from 7% to nearly 8% or I'm sorry lower it lower a percentage is a for the cap rate representative Pearson thank you madam Speaker that's a very good on the spot for not having been prompted a actually heard a couple other land landlords holler out eight and a half percent in the gallery here which is pretty accurate so an eight and a half percent loss for a landlord you know it's pretty close to ten percent so I guess I my point in what I would really advise the body to understand is that for every thousand dollars of rent for every thousand dollars of rent that cap rate loss essentially equates to a hundred dollars of loss for the landlord the only way a landlord makes that up is to increase rents there is no other pot of money it's rent if a tenant I'm sorry with the bill with the bill underlying bill author once again yield to a question he well-represented Pierson madam Speaker thank you so much just just hypothetically speaking if I were a single father and I was looking to rent a property in Rochester Minnesota for $1,000 and all of a sudden I find out this great property is available it's near my place of work but the rent is $1,100 the rents $1,100 but my landlord says you know what if you're a if you're willing to allow me 60 days notice and I only have to give you 30 days notice I'll lower that rent to $1,000 I've been struggling to find properties for a lot of my for a lot of my clients in the Rochester community that could rent for that type of money but that real life scenario if that were in place representative nor are you willing to remove that ability for that for me the potential tenant to negotiate that term within my rent so I can get an affordable place that that works within my budget even though I know I'm gonna stay there for over a year and I don't really care about these waiver periods representative nor madam Speaker and members nobody shall be taking advantage of the tenant by telling them to sign a waiver that we're going to lower your rent we have seen this many instances by whereby many people low income individuals veterans students are being taken advantage of by slumlords so this bill by putting the non-waiver ensures that no one will take advantage of the individuals who are in need for housing who a need of protection so no I think I believe this will ensure an equal playing field and also based on principle of mutuality which I think the courts will always look at the face value of that lease and say if you are the drafting landlord then you shall get an equal period with the tenant so that's why I believe that allowing somebody to have less for rent because you're gonna give them a two months versus one month is not a good idea representative Pearson thank you madam Speaker and there it is the voice of big big big st. Paul government telling you meager citizens of the state of Minnesota what's best for you if you can't afford the rent too bad we think you can't negotiate on your own you are not capable and you're going to be taken advantage of no matter who you are or where you live madam Speaker this is a slap in the face to all the citizens of this state this is big government telling you you have no idea and you can't negotiate terms that are beneficial to you shame on anyone who says those types of comments we have a well-educated strong workforce these people work hard and in the words of a presidential candidate the rents are just too high this is a way to keep rents lower this is an opportunity for landlords to make a plan this is the opportunity to make sure those cap rates are low vacancy rates are low I'm sorry we want cap rates to be high thank you for the smile thank you madam Speaker remember from Ramsey represented Mahoney thank you madam Speaker and to the previous speaker that's the same baloney that they use to keep unions out of every place they could you're making an argument that's a hundred and fifty years old and would have destroyed the middle class come up with a new argument don't use that same old oh we don't want anybody to tell us or help us how to do things we're so smart you're so smart you can do it all yourself you don't need collective action same argument was bad back then it's bad today the member from Hennepin representative Hasan thank you madam Speaker and members I rise in support of this bill and this conversation is going from we're keeping the rents high first is we're protecting people well does what we can keep people safe and protect predatory practices that put them outside I come from a district where we had tent city 300 members of our community were sleeping outside in the cold weather because sham landlords took advantage of things that they didn't know put in their leases on things that they didn't know and they ended being affected well guess what I was elect to protect people to protect students seniors poor people people who look like me and people who look like all Minnesota so this notion that we're keeping rents high is bogus it's false assumption that we're keeping rents high we're not we're protecting citizens of Minnesota and that's what we were elected for if you are not shame on you for the discussion to the amendment hearing none the clerk will take the role on the amendment I'm sorry the clerk will close the roll they're being 56 eyes and 71 days the motion does not prevail the amendment is not adopted there's an amendment at the desk the clerk will report the amendment Munson moves to a men house file number 495 as amended the amendment is quoted a 19-0 three-one-seven representative Munson thank you madam Speaker members fourth times a charm the this amendment simply goes after the first provision of this bill which as I discussed at the very beginning when I stood up this bill would require that the written lease has to identify the unit being rented and as I discussed earlier around this this is mostly an issue with large apartment buildings with high turnover in the same month and as I discussed earlier around the University of Minnesota I don't know how landlords are going to comply with this bill without having a hundred apartments empty for the month of August and kicking all these students out onto the street early so that they can actually lease the right properties when when rental records show that 80 percent of the Union the units are able to be turned or go in and clean up in paint and maybe recarpet a couple in a in a one week period this bill would require that all tenants who are signing lease leases months in advance are given the exact unit number that they're gonna that they're gonna lease this again is a tool that tenants use and the student said landlord are both aware of this they say you're gonna rent a two-bedroom unit but I don't know which one is gonna be the is gonna be available because I don't know which one's gonna be undamaged nine months from now so this provision basically says it unless agreed to in writing or unless waived by the tenant in writing that the written lease has to identify the unit and it's a simple tool again that landlords can use to lower the cost of rent if every unit has to be identified you're going to be shutting down the University of Minnesota house and kicking everybody out or having people move in and then go in and having to move all their furniture around to carpet around them it just doesn't make sense and again it raises the cost of rent this has nothing to do about homeless encampments or racism or discrimination this has to do about lowering the cost of rent for people in Minnesota something that we were elected to do and acknowledging that regulations in burdensome requirements and increasing the risk for landlords is going to raise the cost of rent so members I would ask you to vote on this I'll spare you the the the difficult vote that you're going to have to make on this one but we can just do a voice vote thank you very much thank you madam Speaker the member from Hennepin represented hurt us thank you madam Speaker well members what we've been hearing really is a policy debate a public policy debate about housing and what's important to remember is with regard to rents in the encumbrances that you put on rental property you're really driving the market in such a direction that you won't create more rental housing when you don't create more rental housing the price goes up so the reality is that rental rates reflect the high cost of construction and we talked about cap rates and whatnot you know there's there was discussion about the 30 days 60 day notice what they bill author I think fails to understand madam Speaker is that you don't just vacate a unit and then give it to somebody else you need time to have some reclamation to that unit usually there's painting that has to be done oftentimes carpet has to be replaced there may be repairs to have it in tip-top shape in terms of what the market will sustain for a rent like that so that's why you have disparities between notice and disparities with regard to notice to leave members you've heard a vigorous debate amongst members here who are in the rental housing business and you should be listening closely to their advice again this is the hand of big government getting in the way of the free market and private sector and I give all sorts of accolades to those members Lucero and Pearson Munson you're struggling in a rental market and having the big government and the big hand of government tell you what to do I can stand here before you members and tell you I'm an example of what is the problem and the problem is I can't get out of rental property fast enough I'm divesting myself as fast as I can because of the intrusions of big government so that's what's happening and so what do we do as a public policy we hear it all the time in committee we need all sorts of subsidized housing we got a fun different organizations we ask for waivers that the private sector doesn't get such as waiving whack fees and sack fees waiving the building permit fees these are all the things that are going on in our communities in order to build affordable housing and don't be misguided to believe for one minute with the proposed transit rail with the transit orientated development that you're going to get housing along that without further subsidies it won't happen there's nowhere in the country where it has happened without further subsidies what you're doing is you're killing the private market in the rental housing industry go ahead this is what's going to be all government housing for those who can't afford a home thank you madam Speaker to the amendment the member from had it been representative Noor thank you madam Speaker as we have talked about many times I think we have to look into what the salon loads are doing this is what the tenants are getting members you need to pay attention to what's happening are we supporting this landlords are we standing with the tenants and giving them their rights so I oppose this amendment the member from Olmstead representative Pearson I I guess everybody who Sault property is a slumlord in the state of Minnesota is what that statement actually is loaded with context of would the chair of the Higher Education Committee representative Bernardi would she yield for a question she will yield thank you just quickly I actually am completely curious on this the dormitory housing on campus housing for almost all higher education could potentially be affected by this and I'm just wondering if you could comment as to whether or not you had a hearing in your committee as to whether universities state colleges as students are coming into campus on that busy weekend are they going to be bound by this this specific bill as well as it pertains to student housing on campus representative Bernardi madam Speaker we we have had students talk about the expensive rent on campus I would have to delve into this a little bit more to be able to answer your question madam chair I guess if this didn't have a hearing in higher education I would move to place this on the table until that can be addressed and that question can be answered this would have a huge impact on state owns institutions having to abide by this specific law in this law change representative Pearson are you asking to lay this bill on the table I guess I'd request that we lay the bill on the table can I have a motion to lay the bill on the table and I'd like to ask for a roll call representative Pearson moves to lay the bill on the tables and he requests a roll call are there 15 hands give me time to count seeing 15 hands there will be a roll call since this motion is non-debatable the clerk will take the role on the motion I can't is everybody all members who desire to vote please vote there being fifty four eyes and 71 nays the motion does not prevail to the months and amendment madam Speaker I have the floor correct representative Pierson well thank you madam Speaker and I guess I'm kind of shocked I thought I would I was just curious what the answer the question was and I can't believe that we all voted or a majority of us voted the to not table this I guess I wouldn't have mind consulting with our ctc's campus and their on-campus housing the student housing at all kinds of universities here in the state of Minnesota and I think we could have a huge negative impact to those housing circumstances madam Speaker thank you very much further discussion to the amendment seeing none all those in favor please signify by saying aye those opposed no the noes have it and the amendment is not adopted next amendment the clerk will report the amendment Johnson moves to a min house fall number 495 as amended and the amendment is coded h:o 495 a 11 I recognize the author of the amendment representative Johnson madam Speaker members this bill that we're discussing today and what my amendment is for is due to an issue in a small area of the state of Minnesota a small area of the city of Minneapolis in st. in the twin cities around the University of Minnesota in all the testimony we heard in committee it all centered around the University of Minnesota Twin City campus not at Bemidji State not done at Marshall not up Duluth around the University of Minnesota I tried that in committee to just limit it to that area as best I could that didn't work but what this bill is gonna do it's gonna drive rent up all across the state of Minnesota and in Greater Minnesota we have a tough time with rental facilities already we're short-handed we don't have enough rent rental rental properties for the workforce we need we have companies that can come in or add-on and expand their businesses and they can't even open up the expansion area because they cannot get employees that are qualified because the employees they find cannot find a place to live in Greater Minnesota are our rental rates is a lot less than and down in the metro area so when people build rental units it costs just as much in Blaine to build us build a 25 unit facility as a dozen by Det but the rate of return in Blaine more than covers the cost of construction and maintenance but in Baudette it doesn't even cover the cost of building the facility and what are we gonna do we're gonna raise the cost of rental units make it even harder for people in Greater Minnesota find a place to live so what this amendment does it limits this bill to two units of twenty five rental units or more with 51% of the pop a tenant rate being full-time students in one of the state university or colleges since the issue has always been around the college and the university let's just keep it to that area and try to fix that area although unfortunately it's gonna cost the this bill is going to cost the cost of education and even go higher I recognize the member from Hennepin representative nor madam Speaker I've had many times that this bill will increase rent I can assure you the way the bill is written it's not only about the University of Minnesota it's about many places that are impacted by the same things that I've talked about madam speaker members I oppose this amendment thank you so much representative Johnson members I do ask for the roll call in this a roll call has been requested are there 15 hands seeing 15 hands there will be a roll call you guys are fast members this is a good amendment please support it further discussion to the amendment seeing none the clerk will take the roll on the amendment all members who desire to vote please vote the clerk will close the roll there being fifty two eyes and 71 nays the motion the amendment is not adopted seeing no further amendments of the desk the clerk will give it bill its third reading third reading house call number 495 as amended discussion representative qualm thank you madam Speaker and members so will the author yield to a couple questions he will yield representative Quan thank you madam Speaker to the author are all the solutions for Minneapolis the best solutions for the entire state of Minnesota representative nor but I'm speaker we're talking about tenants throughout the state it's not only about Minneapolis or st. Paul we are here body representing the entire state so this bill ensures that everyone is protected under the law representative Kwon thank you madam Speaker and if the author will continue to yield maybe I can get to a point where he'll answer yes or no he will yield thank you madam Speaker are all solutions for Minneapolis the best for the state of Minnesota I believe that the member answered the question but we will recognize them again representative Nuart nor please thank you madam Speaker as I answered we're not here just to represent Minneapolis we're here to represent the entire state of Minnesota and we collectively act on legislation that will have which is good for the entire state representative Kwan thank you madam Speaker with the author yield to a question he will yield representative qualm why did you not make this bill and have it address the Twin City campuses and those areas for student housing Rep representative nor madam Speaker again this is not about the students only it's an issue that impacts every tenant that who signs the lease not knowing not knowing which apartment they're leasing and by the end of the day they end up being given a place where they never signed for so this is making sure that if you're signing a lease you know which unit you're renting that's just no brainer for anyone who lives in the state of Minnesota representative Kwan thank you madam Speaker and this bill contains a whole lot more than that we heard multiple amendments but the one thing I heard was slumlords I didn't hear affordable housing because the solution for Minneapolis is not a solution for my area probably for a lot of our areas one size does not fit all and I tell you what I think a lot of the people in my district are not evil evil slumlords the painting of all all renters as being evil slumlords know we've got a lot of people in rural Minnesota I know a person used to be my rep you know in my district is now in representative Bennett's district he goes around in small towns that have difficulties and problems because a lot of the housing is rundown he'll buy that housing fix it up and have it available so that a first-time buyer or someone that needs to rent can go in and rent and that is a service not only to the people that are renting and leasing it's a service to those small communities that need that revitalization I'm sure there are a lot of larger communities that have areas of their cities that need revitalization but apparently what is good for Minneapolis is good for the entire state I don't think so and apparently you know in your district such evil people that are doing all the ranting they're all slumlords they you know they're just bad people frankly I know a lot of people in my district and in neighboring districts that aren't bad evil people they care about their communities they care about the you know their their tenants and frankly I have seen when there have been bad times people come forward and help out their tenants to help out the community and these are good people and frankly if you want to make something to fix your districts up then do that but don't go and take and say the state knows best you know the state should write the lease says write the contracts just fill the names in and the address and in a few little particulars no not every situation not every individuals needs are the same and by restraining and confining the option to have people come together adults legal adults and can make decisions come together and negotiate and find something that works for them that's good and frankly that helps with affordable housing and I hear all the time districts all across the state affordable housing but one size fits all which takes away options and negotiations and you it's your bill does a whole lot more else we wouldn't have had what four or five amendments to try and define options that if the little person wants to lease it says hey we can come to this agreement we're adults we come to an agreement make a decision no the state knows better because we need this in Minneapolis and I say that's the wrong approach because the whole state all individuals are not the same an individual freedom we're still a democracy with you know a lot of freedoms but individual freedom is a key component and I've got locations that need to have people that want to come in and provide housing I know a lot of cities when I lived for a while in the Metro some cities you could not get an affordable house because the city had ordinances and other encumbrances that prevented an affordable house for being built and now we want to go and extend it to rent and rental agreements while frankly options and realizing we have individual citizens with freedom of choice that matters at least it still does and I'll vote read the member from blue earth representative Munson thank you madam Speaker and members I too AM gonna be a no vote on this bill should be come as no surprise it really does raise the cost of rent and so I have to ask if the author of the bill would yield speaker he will yield the representative Munson representative nor you you have a you've said several times that you don't think this bill is going to increase the cost of rent but I'd like to ask you if you see that this bill would increase the costs for landlords do you see any of the things we've talked about tonight do you see truth in any of the the issues that we've talked about were my tenants have had some flexibility and that the options that we use to lower the cost of rent can you see that taking those away from us would increase our costs as as landlords representative nor madam Speaker represented Monson I don't see any place in this bill that increases the cost for the landlord we have talked about the notice period and everything else you can give you a tenant two months notice and you can also have that two months notice there's nothing wrong in this bill that does not allow you to negotiate on a period that is equal to what you will give to your tenant representative Monson thank you madam Speaker and I would ask the author of the bill to yield again for another question and I he will yield thank you it's it's difficult because I've been in real estate for 25 years since I was 18 and dealt with I've had hundreds of tenants and have been accommodating in so many cases and representative Pearson and others that have had rental properties we know this backwards and forwards so perhaps I'm making too much of a reach to say right away in explaining that how it increases the cost of rent or even how it increases our costs as landlord as a landlord but removing the flexibility of knowing when my tenant has bought a property and it's intending to leave or if they can give me longer notice then I can give them can you at least see how this bill increases our risk of that that we're giving away that that the taking this that this option away from as landlords would allow us to be less flexible in negotiating terms with the tenant by it way that the tenant could lower that we could lower the cost for tenants in exchange for them giving us longer notice do you see how that works and do you see how it would this that your bill would increase our risk as a landlord representative north but I'm speaking if you look at the time period and represent Monson if you're gonna take a one-month notice to that tenant and tell them gonna increase your rent and if that is something which you negotiated that they can give you one month for them to move out you will have increased their rent by one month by making sure that tenant pays more than what they anticipate it to pay for their rent the incomes are going down and the rents are going up and up so by doing that it's actually impacting the tenants more than any other person in this bill representative Monson okay thank you madam Speaker in representative Noor I did offer an amendment that would allow you to bring parity for notification of rent and notification from the from the landlord or from that from the tenant to quit because I do think that's fair and I did agree with your with your argument on that which is why I offered the amendment to continue to allow that but but the examples that the members here have brought forward in dealing with tenants is being able to be flexible to give tenants the option of a lower rent in exchange for providing us more notice because after all having our apartments filled with tenants who are paying rent is the best way that we can reduce our costs if we have vacant properties out there if our vacancy rate goes up we lose money and if our vacancy rate goes up our interest rates for buying properties goes up if the vacancy rate goes up large corporations and developers and investors in real estate investment trusts will no longer do business in Minnesota if the cap rate here is decreased because the vacancy rate goes up so do you in any way see how your bill can increase the vacancy rate in Minnesota are you asking the member to yield yes I'm sorry madam Speaker I'd asked him if her to yield and answer the question he will yield representative nor madam Speaker represent Munson I don't see any provision in this bill that will increase the cost to the landlord this is more about the tenant landlord relationship by making sure that we have got equal playing field representative Munson thank you madam Speaker and representative nor I I I've tried to had conversations with you and explaining to you how how this business works but there are bad there are bad landlords out there and you can call them slum Lords but all landlords are not slum Lords like you mentioned earlier this this is this bill is going to drive a lot of good landlords away from investing in real estate there are a lot of provisions out there where the pendulum is swinging too far in the other direction and it's increasing the cost of doing business in Minnesota so much so that we as a body have to start subsidizing landlords to get into this business because there are less and less people willing to do it in the cost of rent is going up as a result there's as representative Pearson said there's only one source of revenue for landlords and that's well there should be only one and that should be rent I guess government subsidies and government handouts is another way that we can lower costs but we shouldn't be doing that we should be paying attention to the people in this room as well that that have had experience in renting properties and understand the flexible tools that we use to lower the cost of rent like somebody who wants to buy a house somebody who's going through a divorce or in the in the first provision in your bill as I explained earlier where there's 30 units coming up for availability but I know that at least a few of them need to have work done on them and I don't know which ones they're gonna be so if I approach somebody at a homeless encampment and said how would you like to have half-price rent in this unit come September 1st but I don't know what unit it's gonna be but I'll give you half the I mean you can have half half rent because I need it filled by someone and by the way I'm gonna give you 30 days notice that you have to vacate because I'm giving you half rent or you can pay full rent but that's the deal it's being in a homeless encampment or having in a very affordable apartment because I don't know which apartments going to be available and I just want to have somebody filling it and giving me something that should be a tool that landlords can use to be flexible in creating leases for tenant this is how we can lower the cost of rent give people flexibility give to adults the ability to negotiate a private contract as representative qualm pointed out this is one step further to the government just writing the leases for us fill in the blade connect the dots give a box of crayons to kids and let them fill in the lease and college campuses like they apply for credit cards students are getting in trouble applying for credit cards – because they're 18 years old and they're they get a free Big Mac if they sign up for a credit card at a McDonald's people need to learn how to take accountability for their actions they need to learn how to read leases and read the small print it's part of becoming an adult but this these provisions that apply to the University of Minnesota for you apply to all of Minnesota in my district where we are flexible we have I have a rural farm site that I rent out on several acres and there's nobody that wants to move into a farm site in January so my tenant can't move out in the wintertime that's part of the lease we should be able to write leases that include terms that allow us to lower the cost of rent to reduce our risk in an exchange the tenant gets a lower rent that's fair you are drastically changing the rules out there with this bill to protect the lobbyists and a few people at the University of Minnesota that brought this forward to you and it's disturbing because we have one Minnesota here this isn't just Minneapolis expanded we're trying to write legislation for one Minnesota and we have a piece of legislation that addresses Representative Knorr district only and we don't have problems I don't have tenants in my district coming to me complaining about this representative qualms doesn't have tenants complaining about these issues we have tenants that actually appreciate the flexibility in being able to write a contract between a tenant and landlord so pleased members you had an opportunity to send this back we can vote this bill down and I would encourage a no vote on this because voting YES is going to raise the cost of rent and it's really disturbing oh and I sorry I have one more question for a representative nor if you'll yield for a question he will yield representative Monson representative nor I'm not an attorney but I'm concerned about one provision that wasn't covered in here I have a tenant that's on a month-to-month lease right now and under a written month-to-month lease under the provisions she has to give 90 days notice if she's going to quit but I have to give her 30 so under this provision it says that it doesn't apply to existing leases but if it's a month-to-month lease it never comes up fore-end does that mean that this that lease can extend forever under the current terms or does this somehow apply because every month is a month-to-month renewal representative nor madam Speaker represent months and I'm not also in a Tony but I can tell you that their provisions are under the periodic period that somebody can sign the argument for month to month and this addresses the lease that you have signed and most of the leases that you're signing is usually 6 to 12 months so I'm not an attorney but when you're giving month to month it means 30 days from every month are you going to be paying for that brand representative Monson thank you madam Speaker there are a lot of tenants that are on month-to-month leases because their one-year six-month lease has expired and they're good tenants but the terms that they had signed up for allow the month-to-month lease to exist because they have to give the landlord more notice than the landlord has to give them and that's what allows a month-to-month lease to be affordable for the tenant and work out for the landlord so this actually is going to change a lot of leases in Minnesota and I'm deeply concerned that it's going to raise the cost of rent it's certainly going to raise the expenses of having a property and you met again members I would urge a no vote on this bill the member from Wright representative Lucero thank you madam Speaker there's a provision on the bill line 1.16 through line 1.20 that speaks about the lease start and end date and if a prorated rent applies that it must be on the first page madam speaker would the bill author yield for a question he will yield representative Lucero Madame speaking representative nor why are could just give some background why you singled out the lease start and end date and if it applies the prorated rent to put that on the first page the author of the bill representative newer madam Speaker this applies to when somebody moves in on the 15th of the month and they have paid for the whole month I think you should pay for what you're getting not what the face value of that list should be so by making sure that it's not in page 7 or 8 of that lease agreement we want to bring it forward that you know what you're signing we're not taking away that you're going to tell that tenant that you will be paying for 15 days versus paying for a whole month so whenever you are moving out also you know that you're going to stay in that apartment for 15 days rather than a month so you're paying for that 15 days rather than what's happening right now when people are paying for a whole month and just getting 15 days or even a week so this is why we want to make sure that it's on the front page you know what you're paying for and how many days you're paying for your rent representative Lucero thank you madam Speaker enough to bill author would yield for another question he will yield representative Lucero mana speaker and representative nor as far as you're aware is there anything else in existing state law that mandates where provisions must be on leases or would this be the first instance of a particular provision having to be on a particular page in this case the first page representative nor madam Speaker one who has seen lease agreement I I think there's some requirement that it has some few things have to be on the front page but I'm not aware of any legal process personally represented Lucero thank you madam Speaker well I have a copy of the lease that I use this is a 25 page lease I'm sorry it's a 23 page lease and last year I reference a hall of just the first page here last year in committee I referenced that on my first page Jen about a third of the way down or so I have written in words under underlying this is a legally binding contract please read it carefully and if you could imagine I had a lot of white space on the top which pushed everything else down so members should be aware that obviously there's a lot of provisions that are contained within a lease a few additional in addition to the start and date and prorated if it applies there's the amount of rent that would be paid the method of payment is it a check or is it electronic that has to be included that's important for tenants to know this security deposit is there a late fee what is a late fee when would the late fee apply our pets allowed is their pet deposit use of a premises how can it be used is subletting permitted condition of the premise premises who would be responsible for what kinds of repairs alterations is a tenant allowed or permitted to make alterations can they hit paint pictures can they put holes in the wall for window treatments utilities who is responsible for which utility is the landlord paying for the garbage in the heat or all utilities are no LEED utilities the right of the landlord for entry does the landlord have to give a notice if so how long an hour notice for our notice smoking policy and the background authorization check there are many important provisions but none of them as least as far as the bill author just said he's aware are mandated on any particular page the first couple pages of my lease are a definition of terms and so now what's going to happen is it is complete it is absurd that of all the important provisions let's just pick rent the amount of rent can be on page nine but if it's a pro-rated amount that has to be on page one and that interrupts the natural flow then of definition of terms this is what representative qualms was referring to one size fits all this is a way of micromanaging I truly wish and I'm emphasizing representative nor both in committee and I'm saying to get on the floor the issue that you're trying to address here I true it's not partisan and I truly wanted to work with you but there's been an outright rejection of any ideas we can solve the specific issue that you're trying to address without what's happening here please members understand just this one example that this provision on the front page doesn't make any sense I mentioned in my comments earlier that there are different types of a rental units all across the state there are also different types of tenants my understanding of the roots of this bill the origins is dealing with students and student housing but students that's one type of tenant somebody who's recently turned age eighteen and they're looking for a student housing but there are many tenants types of people in many different stages of life I think it was represented a pearson who mentioned a divorced dad what this bill is going to do it's going to contribute to small landlords because of the int they cannot cover the risks uncertainty is the enemy of business the greater the uncertainty the greater the risk and therefore the greater the cost and so what any business owner wants to do is have more certainty so that they can greater project into the future and therefore lower costs and because there are many landlords out there that are small business owners they might just have one rental unit they might be renting just their basement and then you have the range all the way up to large companies with many properties across the state multi-state companies with many properties across the country those larger landlords they have the ability to mitigate their risk by spreading it across a larger area but as representative hurt oz pointed out the smaller landlords the cost and the risk will be too great that they won't just raise the rent they'll just step out of the business and when you have less supply but more demand the law of supply and demand dictates what price goes up for the remaining that are offering the product and so the customers the tenants in this case are going to pay more I it is just it's so frustrating representative nor that there's just an outright rejection of these other ideas or the willingness to the line of questioning that representative Munson was asking you the willingness to accept that landlords under your bill are gonna have a greater risk they're gonna have a greater cost or that rents would go up you said no to all three of those or you danced around the question and uncomplete unwilling to see through the lens of the small landlords how you and your I should say not you learn which madam Speaker representative Becker Finn for what purpose do you rise point of order state your point of order it is Mason's 124 it is not the person but the measure that is the subject of the debate Thank You representative Becker Finn just remind the body to keep the discussion to the subject at hand Thank You representative Lucero thank you madam Speaker and Thank You representative Becker Finn it is not representative nor that's at issue I appreciate that reminder it is the bill language representative nor it is deeply frustrating that the bill language fails to incorporate any of the ideas in here from other members on this side of the aisle or from small business owners of the reality of what's going to happen as a result of this increased risk increased landlord expense and increase passing those on to the tenant in increased rent representative Pearson was asking chair Bernardi earlier if this bill was heard in higher ed committee as a member of higher ed committee I see represent appear since no longer on the floor the answer is no despite the fact that this bill is going to have a significant impact on student housing on college campuses across the state this bill was not heard in the higher ed committee so as the result of landlords stepping out and nor longer offering their properties for rent what are we seeing being constructed in the apartment or rental space workforce housing what is workforce housing workforce housing is the admission that rent is too high and that government will subsidize a portion of the rent so that the landlord can charge a lower rent to the tenant members that is the direct result of a shortage of rental units or landlords that choose not to rent is that it's the companies that come in and provide the workforce housing to subsidize the rent and what does that do it creates certainty because now the landlord's have certainty and because of that greater certainty of government subsidizing the rent they can charge a lower rent I truly wish we could have worked together to come up with something to solve the scenario that's experienced in a small area of the state by a small type a single type of tenant instead of blowing this open to the entire state instead of one-size-fits-all to all rental units in rental types and I'll end with this madam speaker representative Monson spoke about the flexibility these larger companies do you know the criteria that they use for the rental screening they have the policies across the board one of the policies for example is a very typical policy that you must have a third of the rent can be no greater than a third of your gross income well I is a landlord I have a more lenient policy because I have the flexibility in my toolset to be able to negotiate because members through with this last Great Recession there are really good people really good people that lost their homes and we're foreclosed on they went through bankruptcy and you know what I did is a landlord I helped those people because the one-size-fits-all policies of the larger landlord companies they would not have qualified but I as a smaller landlord with greater flexibility and a toolset that allowed me to shuffle things around allowed them I moet well there was a point when every single one of my tenants had either gone through a foreclosure or bankruptcy and they had destroyed credit how do you think I made up for the increased risk that I as a landlord would be incurring by renting to them at the risk of them unable to pay the rent we we voluntarily negotiated some other aspects of the lease to accommodate their situation that's why having a flexible tool set is very important but when you remove the tool set good people are going to get hurt and I am so happy and the smiles and actually the tears on some of my tenants they cried because I was willing tears of joy willing to rent them not good housing when nobody else would accept them and so we've heard the term slumlord and it is deeply offensive madam Speaker and the great residents of Minnesota we've heard the term land slumlord and for tenants all across Minnesota and for you landlords small and large that are willing to rent to the great residents of Minnesota thank you you're not slumlords and unfortunately we're creating policy based on a very very small percentage of bad people that inflict pain and take advantage of others but the truth is we know the truth that landlords love their tenants and want to help and that flexibility allows us to help them so madam Speaker I would highly encourage a red vote on this so that we can come back together and incorporate some of these other important ideas so we can solve the problem but not increase rent across Minnesota thank you the member from Anoka representative Scott thank you madam Speaker and Thank You representative Nora for bringing this bill and I was the chair of the committee that heard it last last year when it came about and and the students down at the near the University in some cases really are in a pickle of many cases and I appreciate you making the changes for the effective date and making sure that that didn't in fact can conflict with current leases but I do have my major concern with this is the flexibility issue and members most of you know we own some rental property and one of the things that we are able to do is negotiate with people when they have run into hard times and so I'm afraid that for instance under this bill if a tenant came to me and said and you know I've lost my job and I'm gonna have to move back in with my parents or a relative or something that that that's the 60-day if if it's a 60 day time period that we have for notification that they're gonna have to fulfill that least for the next 60 days whereas in the past what my husband and I have done is said hey let's we'll work with you if we can get it rented out before that we'll waive that 60 day notification period for you and you're taking away with this bill you're taking away that flexibility for people to act in good faith and help one another out and I really would prefer representative nor if this bill did apply just a university housing or if some of the language were tightened up so that it would only affect those certain situations where there's a problem Thank You members I encourage you no vote further discussion to the bill is there anybody who wishes to speak it was not yet spoken on the bill representative Munson thank you madam Speaker and representative Lazaro brought up a very interesting point on the lease duration notice because I think the terms of the lease are always first so that everything below is defined by those terms and I've also realized that many many times I will write an amendment to the lease instead of writing a whole 25 page lease we just changed one term of the lease and changing a term of a lease maybe that's where you rent out an apartment for one unit and they change their mind and they find another roommate and they want to have the three-bedroom unit well that goes on the amendment but that's not in the first page of the lease and I think that this that this bill needs work and so madam Speaker I would make a motion to refer this to the Ways and Means Committee so that it can go back through housing where we can actually work on some of these provisions of this bill that need work so that we're not directly raising the cost of rent in Minnesota representative Munson moves to re-refer house file 495 to the Committee on ways and means discussion representative Winkler members please vote no seeing no further discussion all those in favor of the motion please signify by saying aye those opposed no the motion does not prevail to the bill further discussion members it's representative nor thank you madam Speaker and members this is about fairness this is about equity this is about consumer protection and I'm asking for your support for this bill it's not only about the University of Minnesota it's not only about Minneapolis or st. Paul this is for every tenant and this is about the principle of mutuality based on the common law principles this allows for people to have equality and at that provision and of the agreement so I ask for your support thank you so much seeing no further discussion the clerk will take the roll on the bill but clerk will close the roll they're being 71 eyes and 53 nays the bill is passed and its title agreed to announcements by the speaker mm-hmm announcement by the speaker the speaker announces the appointment of following members of the House to a conference committee on house file number 400 Olsen Halvorsen and Baker motions and resolutions members there are not copies of the non-controversial motions on your desk and online if there is no objection the motions will be approved see seeing no objection the motions are approved motions and resolutions Dean moves to that house file number 15 43 now on the calendar for the day be referred to the Committee on ways and means representative Dean to your motion thank you madam Speaker Friday we got a note from Department of Human Services that there's small fiscal note so we have to send it back to Ways and Means before we can bring it to the floor any further discussion to the motion seeing none all those in favor say aye those opposed no the motion prevails papí moves at hostile number 23 Oh to be recalled from the Committee on Commerce and be referred to the Committee on agriculture and food finance and policy division representative poppy to your motion thank you madam Speaker and yes this is I'm house file two three zero two its representative Becker Finn's bill relating to agriculture establishing a financial responsibility requirement for owners or white-tailed deer ask that be referred to our community thank you a discussion to the motion seeing none all those in favor please signify by saying aye those opposed no the motion prevails announcements the member from Nicolette's representative brand thank you madam Speaker for 162 years the citizens of st. Peter have been slighted by an event that would some characterizes some of the darkest days of 1857 you see there was a bill that passed both the House and the Senate although they called it the council back then to move the capital of Minnesota to st. Peter even though governor Willis Gorman also supported the legislation there was some controversy since the legislation had been passed there was a guy named jolly Joel rillette who stole the legislation and he hid somewhere in st. Paul until after the legislature had convened there go stopping the move from the banks of the Mississippi River to the banks of the Minnesota River I believe this action to be a great injustice the hard-working folks of st. Peter and surrounding areas and this no doubt has been a conspiracy that reaches all the way to the folks from Minneapolis and st. Paul delegations at that time as well and you know back home I go to the grocery store I go to church wherever I go people ask me when are we moving the capital back to st. Peter to that extent I'm asking that each of each members of the House read my resolution and that you've been handed out today and that in a bipartisan way we move the capital of Minnesota back to st. Peter the rightful capital city thank you all so happy April Fool's Day annoucements representative welcome on thank you madam Speaker members on behalf of the civility caucus I want to invite all of you to a training on collaboration and negotiation tomorrow from 6 to 9 p.m. in Capitol room 316 light but delicious dinner will be provided this is not an April Fool this is the real deal madam Speaker I recognize the minority or the majority leader representative Winkler madam Speaker I move that when the house adjourns today it adjourns until 12:00 noon April 3rd 2019 representative Winkler moves that when the house adjourns today it adjourns until 12:00 noon Wednesday April 3rd all those in favor please signify by saying aye those opposed no emotion prevails representative Winkler madam Speaker I move that the house do now adjourn representative Winkler moves that the house do now adjourn all those in favor say aye those opposed no the house is adjourned

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